A Stock Analysis of Disney

DIS Stock Analysis

The stock analysis of DIS (the Walt Disney Company)

1. Economic Analysis

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The graph shows the GDP and real GDP quarterly with the year 2005 as the basic year. As is shown in the graph, at the end of the third quarter of 2008, economy began to decline, both GDP and real GDP began to decline. So it was the time we known as the economic crisis. The downturn of the economy stopped at the end of the second quarter of 2009, but there’s not an optimistic sign of recovery since GDP and real GDP remain nearly constant till the end of the third quarter. But at least it’s a good sign that the economy is not going into a worse condition and that someday it will go back to its normal routine. The market is always closely related to the economy, so now it’s the point of changing and a good time to enter the market to wait by seeing the economy expanding and the value of the stock growing.

2. Industry Analysis

The Walt Disney Company belongs to the Entertainment-diversified industry. The industry is major in the entertainment and also has other business such as producing some products about the company or so. The industry now has the market capitalization of 167B. The industry performs well when consumers have enough money. It is when apart from a proper saving and essential consumption, consumers have some extra money to fulfill their spiritual needs. The industry has the characteristic of brand effect and the creation and technology are also important. For instance, 3D movies’ success is the effect of the technical improvement. Thus, the diversified industry like producing stationary or designing clothes is fully relying on the brand name. To analysis the relationship between the industry’s stock and the whole economy, we could have a look at the graph. The price declined in 2001, begun to bounce back in 2003. It was the period during the economic downturn in America. During the good time, we can see from the graph, the stocks perform really...